TSX Edges Higher on Weak US Jobs Data and Lower Fed Rate Hike Odds

Canada's main stock index, the S&P/TSX Composite Index (.GSPTSE), rose by 0.4% on Friday, led by mining and real estate shares. This gain followed a disappointing US jobs report for July, which showed nonfarm payrolls fell by 23,000, missing economists' expectations of an 80,000 job addition.

The weaker-than-expected US employment data sparked a surge in gold prices, with spot gold up 2.3%, and silver climbing 3.3%. Miners (.GSPTTMT) were the top performers, with B2Gold Corp (BTO.TO) leading gains after rising more than 12%.

The Bank of Canada is widely expected to keep interest rates unchanged in September, a view supported by data compiled by LSEG showing that the odds of a 25-basis-point hike have moderated to 44% from 67% last week. Allan Small, senior investment adviser of the Allan Small Financial Group with iA Private Wealth, noted that 'bad news is good news' for markets in this case.